Kochi, August 18, 2009: MTS, the mobile telephony brand of Sistema Shyam TeleServices Limited (SSTL), a joint venture between Sistema (LSE: SSA) of Russia and Shyam Group of India, has announced the launch of a groundbreaking special offer exclusively for its customers in Kerala on the occasion of Onam. The special tariff plans, ‘MSaver 98’ & ‘MSaver 199’, give customers 1st minute free on all local calls. Subsequent call durations from 2ndminute onwards will be charged at 49p/min.

Announcing the plans, Mr. Srinirao Saripalli, Chief Operating Officer, Kerala & Tamil Nadu, Sistema Shyam TeleServices, said “On the auspicious occasion of Onam, we welcome the spirit of festivity and celebration with an incredible value proposition for our customers in Kerala. As in the past, we look forward to seeing a large number of customers draw value the from the innovative ‘MSaver 98’ & ‘MSaver 199’ offerings of MTS.” While the carnival of Onam continues for ten days in Kerala, our special Onam offer will continue to add festive fervor to the lives of MTS subscribers for full 6 months, added Mr. Saripalli.

MTS subscribers across 425 towns in all 14 districts of Kerala can activate the ‘MSaver 98’ & ‘MSaver 199’ plans by buying vouchers worth Rs. 99 and Rs. 199 respectively. The validity of the plans is 30 and 180 days each, and can also be combined with MCard499, MSaver 51, MSaver 149 schemes. After the expiry of the tariff validity, the customers will automatically be moved back to the respective current tariff plan subscribed by them.

MTS has presence in 6 telecom circles of India including Tamil Nadu, Kerala, Rajasthan, Bihar, Kolkata & West Bengal, serving a base of 1.35 million customers nationally. It was recently also recognized as the “Most Successful New Telecom Operator” at the Infocomm CMAI National Telecom Awards.

Tariff Details

MSaver

98

199

Talktime

0

0

Tariff Validity

30 days

180 days

Call rates (Rs./min)

Local

On-net

1st minute Free & 49p/min from 2ndminute on all calls

1st minute Free & 49p/min from 2nd minute on all calls

Off-net

Fixed

STD

Re.1/min

Re.1/min

Condition

1st minute Free on all calls for a period of 30 days

1st minute Free on all calls for a period of 180 days

SMS

Local

0.50

0.50

National

0.50

0.50

International

5.00

5.00

About Sistema Shyam TeleServices

Sistema Shyam TeleServices (SSTL) is a joint venture company between Sistema {LSE: SSA} of Russia and Shyam Group of India. Sistema is the majority share holder in this joint venture with a 73.71% equity stake, along with the Shyam Group, holding a 23.79% stake and the rest 2.5% being public partake. SSTL has spectrum to provide mobile telephony services in all the 22 circles across the country. In a recent development, SSTL tied up with Mobile TeleSystems OJSC of Russia to bring the globally acclaimed telecom brand-MTS-to India. MTS is the 8th largest telecom brand in the world and has a subscriber base of close to 100 million globally. It has recently been voted as the 71st ranked brand out of 100 top global brands in the world by Millward Brown.